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Crescent City Connection amnesty program cost more than it collected, audit says

The Crescent City Connection CCC

The Crescent City Connection amnesty program, created to allow motorists to settle up old toll tag violations, netted just $128,681, but cost $353,283 to implement, according to Legislative Auditor Daryl Purpera's office.
(David Grunfeld, NOLA.com | The Times-Picayune)

The Crescent City Connection toll amnesty program, which let drivers settle past violations without penalties, cost more than it collected, according to an audit released early Monday. The program netted $128,681 but cost $353,283 to implement, for a loss of $224,602.

Legislative Auditor Daryl Purpera said 20 percent of the money collected went toward the program's expenses. These included "postage and labor to collect and analyze violation data, prepare letters to violators and process payments received."

The amnesty program drew an immediate backlash from residents about the predominantly three-year-old violations. Outstanding violations not settled through the program were turned over to the state attorney general's office for collection, where motorists face possible wage and bank garnishments and a flag on their driver's licenses.

Yet Sen. David Heitmeier, D-Algiers, has introduced Senate Bill 500 that would refund money paid by motorists during the amnesty program for fewer than five violations. It also would prohibit action against motorists to collect old toll tag violations.

The audit wraps up the final fiscal year for the Crescent City Connection Division, which operated as a separate unit under the state Department of Transportation and Development. Oversight of the bridge was merged into the transportation department in late 2012.

The audit report, which covers fiscal 2013, also found:

A repair project awarded without being advertised for bid, in violation of state law

$103,051 in operating expenses incorrectly charged to the bridge

More than $8 million in capital project money not assigned to a related project.

The audit also details the disbursement of $31.3 million that was left in the bridge's trust accounts after its bond obligations were settled in late 2012. Of that amount:

$12.8 million was transferred to the transportation department for bridge and ferry service for the remainder of fiscal 2013

$1.2 million was dedicated to continuing capital projects

$17.3 million was transferred to the Crescent City Connection Transition Fund. The report said $10.4 million of the $17.3 million had been earmarked for related projects.

In response to the audit, Transportation Secretary Sherri LeBas said failing to properly advertise the $495,000 contract was an isolated incident. The audit said the employee was not aware of the advertising requirement.

"We have well documented procurement and bidding procedures, as well as an established, on-going training program for employees that perform these functions,'' LeBas said.

LeBas also attributed a coding error to CCC dollars being used to provide the majority of funding for three projects.

Voters rejected a 20-year extension of the CCC tolls in May, after a judge ordered a second referendum on the issue. Mike Teachworth of Harvey had challenged the initial November 2012 vote, which narrowly approved a continuation of tolls.

Tolls were last collected March 5, 2013. East bank-bound motorists paid an average $21 million annually to cross the span.

According to the audit, $6.5 million of CCC money was moved to the Geaux Pass Transition Fund, comprised of balances left in toll tag accounts, deposits and cash as of July 1. The state Treasury Department, which is handling the money through its unclaimed property division, had refunded $712,922, the audit said.

Residents have until June 30 to claim any money they are owed. After that date, the balance will be transferred to the New Orleans Regional Planning Commission for expenses, including the ferries that are now run by the Regional Transit Authority.

State Sen. J.P. Morrell, D-New Orleans, sponsored legislation creating the amnesty program. It let motorists pay past due citations without fines or additional fees. The action came on the heels of an April 2013 legislative report that found a backlog of 1 million outstanding violations.